Researchs Of Relevant Legal Problems On Bank Examining Under Documentary Letter Of Credit

For a long time, letter of credit (L/C) has been keeping vigorous in the world economy and trade. Although the international L/C statute law has revised for many times, it owns irreplaceable advantage and practical applicability. Because that there are very little written law in all of the countries, UCP become the most popular international practice, which is famous for advance with times. In 2007, UCP600 was published which is more simplify and explicit comparing with the earlier version.Nevertheless, in practice and theoretical study the bone of contention of L/C always centralizes in the examinations of the documents. Therefore, the research on the documents examinations has important significance. Through the rule of UCP600, the author found that the international Chamber of Commerce confirms the"strict compliance"principle as the guiding principle, which is approved by most countries. Besides that the"strict compliance"principle will have a loose change and the understanding of that will be gradually unified and standardized.For the L/C legislation legislature should do some things, and leave some things undone. At the same time related cases and materials also should be collected and compiled for concerned people in order to promote L/C practice and prevent vicious and abusive use in practice. So the establishment of the examination standard should be based on the following rules such as the independent abstract rule and the certainty of payment. Besides that the payment should also be quick, efficient and inexpensive. So the bank people should be an expert of examining documents and all the disputes between applicant and beneficiary would be settled before issuing a L/C.